BNZ borrowers face higher fixed mortgage rates when it comes time to re-fix their mortgages.
The Bank of New Zealand has raised its fixed mortgage rates.
The bank raised its floating home loan rate on April 14 from 5.15% to 5.5% following Te Pūtea Matua Reserve Bank’s decision to raise the official cash rate (OCR) by 1% at 1.5%.
Now, BNZ has raised its one-year mortgage rate to 4.55% from 3.99% and raised its two-year rate to 5.25% from 4.69%.
The Reserve Bank lifted the OCR in a bid to tackle rising inflation, which has pushed up the cost of living for households.
* Kiwibank and BNZ are following other major banks in raising home loan rates
* ASB and Westpac raise home loan rates after Reserve Bank OCR hike
* Homeowners underestimate the magnitude of upcoming home loan rate hikes
Earlier this week, Reserve Bank Governor Adrian Orr told the International Monetary Fund that he was “not in a good position” with inflation, ahead of new figures expected on Thursday that could push up inflation above 7%.
Along with rising costs for everything from food to services, homeowners who owe money on their homes should prepare for higher home loan rates.
BNZ’s decision puts its one- and two-year rates on par with ANZ.
NEW NZ PARLIAMENT
Reserve Bank Governor Adrian Orr discusses the level of concern over inflation in February.
Westpac, ANZ and Kiwibank currently offer lower rates.
Westpac’s one-year rate is 3.99%, while ASB and Kiwibank charge 4.19%.
Westpac’s two-year rate is 4.79%, while Kiwibank charges 4.85% and ASB charges 4.95%.
The lowest one-year rate is currently 3.49% from Heartland Bank.
A recent Westpac survey shows that many households are struggling to absorb increases in the cost of living.
Just over two-thirds of the 1,600 Westpac customers surveyed were confident they could handle the rapidly rising cost of living, and more than half were already cutting costs and back to the economic basics of budgeting and meals. . Planning.
But while the majority felt they could cope with high inflation, nearly a third feared they could not cope with it, and 53% of women and 39% of men said they were extremely concerned about rising inflation. Cost of life.
SBA research has shown that nearly four in 10 people have persistent problems repaying their loans on time.